Arequipa Resources - August 13, 1996 - Issue of Notice of Change of Information to Directors' Circular.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--Aug. 14, 1996-- AREQUIPA RESOURCES LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : AQP AQP Aquaporin (family of membrane channel proteins) AQP Association for Quality and Participation AQP Advanced Qualification Program (aviation) AQP Arequipa, Peru - Rodriguez Ballon ) REVIEW OF ASSAY SAMPLE PREPARATION PROCEDURES INDICATES UNDERSTATEMENT OF PIERINA GOLD GRADE FURTHER PIERINA DRILL RESULTS Issue of Notice of Change The Board of Directors of Arequipa Resources Ltd. (the "Company") announced that it has today mailed to its shareholders a Notice of Change of Information to its Directors' Circular dated August 8, 1996 in response to the take-over bid (the "Barrick Offer") made by Barrick Gold Barrick Gold Corporation TSX: ABX NYSE: ABX is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units (RBU's) located in Australia, Africa, North America and South America. Corporation (through a subsidiary) to purchase all of the issued common shares of the Company. In the Notice of Change, the Board of Directors stated that it is not making a recommendation with respect to the Barrick Offer. The Board is not making a recommendation with respect to the Barrick Offer for the following reasons: (1) the Company is continuing to receive assay results from its exploration program at Pierina and, accordingly, the size of the ore deposit at Pierina has not yet been completely defined; (2) the Directors have met with their financial advisors and have received an update as to the status of their work relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc their fairness opinions Fairness Opinion A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition. Notes: A fairness opinion serves as a document used for guidance in a merger, takeover, or acquisition. . The Directors have not, as yet, received opinions from Nesbitt Burns Inc. and Loewen, Ondaatje, McCutcheon Limited as to the fairness of the Barrick Offer from a financial point of view to the shareholders of the Company; and (3) several major mining companies are continuing to review detailed information concerning the Company and may be prepared upon completion of their review to make a competing offer for the common shares of the Company. The Directors and their financial and legal advisors are continuing with their efforts to increase value for shareholders of the Company and, in light of the continuing rapid augmentation AUGMENTATION, old English law. The name of a court erected by Henry VIII., which was invested with the power of determining suits and controversies relating to monasteries and abbey lands. of the mineral resource at the Pierina property, to provide the greatest possible time in which enhanced value can be achieved. Review of Assay Sample Preparation Indicates Understatement of Pierina Gold Grades The Company has received check assays on previously disclosed assays that strongly indicate a significant understatement of gold content at Pierina has occurred. This change results from identification of the very fine grained nature of the gold in the Pierina ore which requires a certain method of assay sample preparation and which has been brought to the attention of management of the Company by one of the major mining companies currently reviewing the Company's assets. As the Company previously disclosed, a significant percentage of the gold in the Pierina ore occurs as very fine grained pulverulent pulverulent powdery; dusty. material which tends to go into dust when the ore is crushed, pulverized pul·ver·ize v. pul·ver·ized, pul·ver·iz·ing, pul·ver·iz·es v.tr. 1. To pound, crush, or grind to a powder or dust. 2. To demolish. v.intr. or drilled. Screen analyses made when ore was crushed for column leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. tests now in progress showed that the minus 200 mesh Refers to an interconnect architecture that cross- connects several devices. See mesh network, wireless mesh network and switch fabric. (character) mesh - The INTERCAL name for hash. fraction (the finest fraction), which accounted for 20.4 percent of all of the gold, had an average grade of 25.83 grams per metric tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. or almost four times the average grade of the samples. Installation of a second cyclone cyclone, atmospheric pressure distribution in which there is a low central pressure relative to the surrounding pressure. The resulting pressure gradient, combined with the Coriolis effect, causes air to circulate about the core of lowest pressure in a dust catcher dust catcher n. Informal A little-used decorative object or piece of furniture. on one of the reverse circulation ("RC") drill rigs showed that the fine dust escaping from the first cyclone contains an average of eight times the average overall gold content of the samples. When this discrepancy DISCREPANCY. A difference between one thing and another, between one writing and another; a variance. (q.v.) 2. Discrepancies are material and immaterial. was brought to the Company's attention, the Company reviewed its sample preparation and analytical procedures Analytical Procedures is one of financial audit skill which help an auditor understand the client's business and changes in the business, to identify potential risk areas and to plan other audit procedures. . The procedures used to crush crush A combination commodity trade in which soybean futures are purchased and soybean meal or oil futures are sold. Compare reverse crush. the sample for assaying would not normally result in a loss of gold in the sample, but the very fine grain size of the gold at Pierina made it susceptible to loss in dust. Through the course of the Pierina project most of the sample preparation and assaying has been done by an international mineral assay company (the "Lima Assay Lab") with a laboratory in Lima, Peru, with a split of every tenth assay pulp sent to Bondar-Clegg & Company Ltd. ("Bondar-Clegg") in Vancouver, Canada for check assaying. A recent review indicated that the Lima Assay Lab pulverizing procedures employs a type of intermediate pulverizing hammer mill which creates more dust than the more conventional Bondar-Clegg pulverizing system and that a significant amount of dust appeared to be lost into the dust control system. In order to investigate this apparent discrepancy, the Company conducted two tests. In the first test, duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. cutting samples of all samples in the 110 metre metre In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. intercept intercept in mathematical terms the points at which a curve cuts the two axes of a graph. in hole RC 300S 200E were sent to all of the Lima Assay Lab, Bondar-Clegg in Vancouver, and Geolab Peru y Cia S.A. ("Geolab") in Arequipa, Peru for both sample preparation and assaying. The Geolab sample preparation procedure is similar to that used by Bondar-Clegg. The Bondar-Clegg results were approximately 29 percent higher than the Lima Assay Lab and the Geolab results were approximately 20 percent higher than the results from the Lima Assay Lab. In the second test, 62 cutting samples were collected, which represented every available sample which had been used in the every-tenth-sample Bondar-Clegg assay pulp check sampling program. In this second set, Bondar-Clegg did both the sample preparation and the assaying as a comparison with the results from the same samples in which the Lima Assay Lab had previously done sample preparation. In the second set Bondar-Clegg's results averaged 19 percent higher than those achieved by the Lima Assay Lab. While additional check assaying is necessary, the Company believes that based on the tests described above there is now a strong indication that the assay returns reported by the Lima Assay Lab, which represent substantially all of the Pierina assays previously disclosed, are understated. It is also possible that an additional gold loss, in an undetermined amount, has occurred in the drilling and sampling, particularly in the wet sample collection. This discrepancy in the assaying results from the Pierina samples was initially recognized by one of the major mining companies considering making an offer for the common shares of the Company in the course of its due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. review of the Company's operations. Update on Pierina Exploration Program The Company has continued its accelerated drilling program at the Pierina property as disclosed in the Directors' Circular and has completed the following drill holes on the main zone and southern extension, results of which are summarized in the attached table. Continuing Review of Potential Competing Bidders Several major mining companies are continuing to review the assets and properties of the Company with a view to making an offer for the common shares of the Company. Two additional major mining companies have entered into confidentiality and standstill agreements Standstill agreement Contract by which the bidding firm in a takeover attempt agrees to limit its holdings of another firm. standstill agreement with the Company since the date of the Directors' Circular and have commenced review of the Company's assets and properties. Conclusion Ms. Catherine McLeod, President of the Company, stated that "We continue to be extremely pleased with the results to date. The Pierina deposit remains open to the south and to depth on the 500 and 600 south lines where four holes have bottomed in mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. of up to 6.40 grams per tonne gold. The step outs reported today represent a further 300 metres beyond the previously defined resource and the deposit is still open. In addition, the increase in the deposit's grade from the check assays should result in a significant increase in contained ounces of gold and further enhance the project's already exceptional economics." ON BEHALF OF THE BOARD OF DIRECTORS "Catherine McLeod" Ms. Catherine McLeod President DRILL RESULTS - MAIN PIERINA ANOMALY AND EXTENSION (see map for locations)
Hole No. Type From To Interval Grade Grade Drill
(m) Gold Silver Depth
(g/t) (g/t) (m)/
Comments
00N-50E RC 0 64 64 6.47 (x) 78
(xx) (1)
Vertical
200S-100E RC(B) 10 68 58 2.42 38 90 (xx) (1)
Vertical
500S-400E RC 40 46 6 2.03 (x) 192
(1) 58 192 134 4.56
Vertical - bottomed in
mineralization (6.40 g/t Gold)
500S-500E RC 56 227 171 0.92 (x) 227
(1)
including 28 1.83
Vertical
600S-200E DD 88 102 14 2.02 (x) 195
130 156 18 1.43
168 192 24 0.89
including 4 1.12
4 1.73
111 degrees Azimuth at
-70 degrees inclination
600S-300E RC 64 158 94 1.94 (x) 220
(xx)(1)
including 62 2.45
Vertical
600S-400E RC(A) 76 178 102 4.50 (x) 178
(xxx) (1)
Vertical - bottomed in
mineralization (2.72 g/t Gold)
600S-400E RC(B) 126 198 72 3.31 (x) 198
(1)
including 32 5.61
201 degrees Azimuth at 50 degrees inclination
bottomed in mineralization (2.49 g/t Gold)
800S-400E RC 178 186 8 1.98 (x) 216
Vertical
800S-600E RC 66 74 8 1.13 (x) 216
86 90 4 1.07
Vertical
900S-400E RC 86 118 32 1.72 (x) 218
216 236 20 1.54
Vertical
900S-500E RC 14 24 10 1.06 3 240
38 80 42 1.21 7
114 200 86 1.38 2
Vertical
(x) assays pending (xx) incomplete assays previously released (xxx) previously released in error as an angle hole
Notes: (1) These drill holes were assayed by the
Lima Assay Lab.
(2) Drilling completed or in progress pending assays
on: 300S-300E; 400S-400E; 600S-600E; 700S-300E;
700S-400E; 700S-500E; 800S-500E.
NOTE: Location maps available from the Company at the phone number listed below. CONTACT: Arequipa Resources Ltd. Ms. Catherine McLeod, 604/684-0003, 604/684-0007 (Fax) |
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